Teradyne (NASDAQ:TER) Shares Down 3.2% – What’s Next?

Teradyne, Inc. (NASDAQ:TER) shares traded down 3.2% during trading on Thursday. The stock traded as low as $388.85 and last traded at $398.72. Approximately 3,318,687 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 3,548,806 shares. The stock had previously closed at $411.78.

Key Stories Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne launched the Titan HP platform, adding burn-in capabilities designed to test advanced AI data-center devices. The product could support demand from AI-chip manufacturers and strengthen Teradyne’s semiconductor-test portfolio. Teradyne Introduces Titan HP Platform
• Positive Sentiment: The company’s Magnum E2 memory-test system targets advanced DRAM and high-speed NAND flash applications, providing another potential growth avenue tied to AI and data-center infrastructure. Teradyne Magnum E2
• Positive Sentiment: Teradyne Robotics and Elite Robots settled a collaborative-robot dispute, removing a legal uncertainty affecting the robotics business. Robotics Dispute Settlement
• Positive Sentiment: Teradyne and Bright Machines plan to combine Teradyne’s robotics and test technologies with Bright Machines’ software-defined manufacturing platform, potentially expanding automated-factory opportunities. Teradyne and Bright Machines Collaboration
• Neutral Sentiment: Teradyne is approaching its October earnings release. Analysts reportedly expect strong triple-digit year-over-year EPS growth, raising expectations for the results and management outlook. Teradyne Earnings Preview
• Negative Sentiment: Teradyne traded lower alongside IPG Photonics, Nova, NXP Semiconductors, and Microchip Technology in a broader semiconductor selloff, indicating sector-wide risk rather than a company-specific catalyst. Semiconductor Stocks Trade Down
• Negative Sentiment: Reports said Teradyne underperformed competitors and declined ahead of earnings, suggesting investors may be taking profits or reducing risk before the results. Teradyne Underperforms Competitors
• Negative Sentiment: An investor commentary expressed caution about Teradyne despite strong AI demand, highlighting concerns about competitive positioning and execution. Cathie Wood’s reported sale of Teradyne shares may add to negative sentiment. Caution on Teradyne Cathie Wood Sells Teradyne

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on TER shares. Wall Street Zen cut shares of Teradyne from a “buy” rating to a “hold” rating in a research report on Monday, September 28th. Morgan Stanley upped their price target on shares of Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Zacks Research downgraded shares of Teradyne from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Susquehanna lifted their price target on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a report on Tuesday, June 30th. Finally, Bank of America boosted their price objective on shares of Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Eleven analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, Teradyne currently has an average rating of “Moderate Buy” and an average target price of $396.80.

Teradyne Trading Down 3.2%

The stock’s 50-day moving average is $381.31 and its 200-day moving average is $371.11. The stock has a market cap of $62.34 billion, a price-to-earnings ratio of 54.69, a P/E/G ratio of 0.87 and a beta of 1.75.

Teradyne (NASDAQ:TER) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the previous year, the company posted $0.57 earnings per share. Teradyne’s revenue was up 103.9% compared to the same quarter last year. On average, equities analysts predict that Teradyne, Inc. will post 9.11 earnings per share for the current fiscal year.

Teradyne Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend was Friday, September 4th. Teradyne’s dividend payout ratio is 7.13%.

Insider Transactions at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $337.83, for a total value of $1,351,320.00. Following the completion of the sale, the chief executive officer directly owned 108,495 shares in the company, valued at approximately $36,652,865.85. This represents a 3.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of TER. Community Financial Services Group LLC acquired a new position in Teradyne during the 2nd quarter worth approximately $29,000. McIlrath & Eck LLC acquired a new position in shares of Teradyne during the first quarter worth $30,000. Elevation Wealth Partners LLC lifted its position in shares of Teradyne by 1,320.0% during the second quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock worth $34,000 after purchasing an additional 66 shares in the last quarter. Mcdonald Partners LLC purchased a new position in shares of Teradyne in the second quarter valued at $36,000. Finally, University of Texas Texas AM Investment Management Co. acquired a new stake in Teradyne during the 4th quarter valued at $41,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

About Teradyne

Teradyne, Inc is a global provider of automated test equipment and industrial automation solutions. Founded in 1960 and headquartered in North Reading, Massachusetts, the company develops systems that help manufacturers test the performance, quality, and reliability of electronic products and components.

Teradyne’s products include semiconductor test systems used to evaluate integrated circuits, memory devices, and other semiconductor components. The company also provides test solutions for wireless products, storage systems, and complex electronic systems, along with related software, services, and support.

Through its Industrial Automation segment, Teradyne offers collaborative robots from Universal Robots, autonomous mobile robots from Mobile Industrial Robots, and robotic arms and systems for manufacturing and other industrial applications.